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A change for the better in transportation policy: Will increased competition bring about greater efficiency in the railway system?

Gerd Aberle, Günter Knieps, Heinz Hilbrecht
ifo Institut für Wirtschaftsforschung, München, 2001

in: ifo Schnelldienst, 2001, 54, Nr. 09, 05-12

After attempts at achieving profitability at Deutsche Bahn in the mid-1990s, large operating losses are again expected for 2001 and 2002. One of the reasons for this unfavourable forecast is insufficient progress in the area of productivity. Prof. Gerd Aberle, University of Gießen, argues that the railway network should be opened up to other providers: "Intermodal competition will help new rail transport providers with innovative products and competitive strategies to exploit existing market potential more efficiently and to create new market potential. New providers can help show what possibilities lie in the rail transport system and how they can be implemented in concrete terms." Prof. Günter Knieps, University of Freiburg, and Heinz Hilbrecht, Director for Land Transportation at the European Commission, presents the case for non-discrimination in access to the railway network.

JEL Classification: L920

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ifo Institut für Wirtschaftsforschung, München, 2001